Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing
This study introduces a dual-channel supply chain including a supplier and a retailer with capital constraints, in which the retailer can apply for the trade credit financing from the supplier. This work investigates the effects of two typical behaviors, free riding behavior and consumer switching b...
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2021/5530124 |
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| _version_ | 1832552794151714816 |
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| author | Senyu Xu Huajun Tang Zhijun Lin |
| author_facet | Senyu Xu Huajun Tang Zhijun Lin |
| author_sort | Senyu Xu |
| collection | DOAJ |
| description | This study introduces a dual-channel supply chain including a supplier and a retailer with capital constraints, in which the retailer can apply for the trade credit financing from the supplier. This work investigates the effects of two typical behaviors, free riding behavior and consumer switching behavior, on inventory, ordering, and sales effort decisions in decentralized and centralized decision situations with stochastic demand. In order to achieve the optimal performance in the centralized system, this research designs a partial buyback contract to coordinate the supply chain. Furthermore, numerical analysis is provided to test the feasibility of the model. The results indicate that in the dual-channel supply chain with the above two behaviors, (1) the optimal sales effort level, optimal order quantity, the optimal offline, and online profits under the centralized decision-making are more than those under decentralized scenario, except for the optimal inventory level; (2) the increase of the offline consumer switching rate will lead to the reduction of the offline order quantity and the offline expected profit and raise the online inventory level and the online expected profit; (3) the increase of the online consumer switching rate will raise the offline order quantity and the offline expected profit but has no significant impact on the online inventory level and the online expected profit; (4) the increase of the free riding coefficient of the supplier, no matter whether in decentralized or centralized systems, will reduce the offline sales effort level, the offline expected profit, and the online expected profit and raise the inventory level. Finally, this work provides some managerial implication. |
| format | Article |
| id | doaj-art-983669f739224977ab7bfc2a7e96b8f8 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-983669f739224977ab7bfc2a7e96b8f82025-02-03T05:57:51ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/55301245530124Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain FinancingSenyu Xu0Huajun Tang1Zhijun Lin2School of Business, Macau University of Science and Technology, Macau, ChinaSchool of Business, Macau University of Science and Technology, Macau, ChinaSchool of Business, Macau University of Science and Technology, Macau, ChinaThis study introduces a dual-channel supply chain including a supplier and a retailer with capital constraints, in which the retailer can apply for the trade credit financing from the supplier. This work investigates the effects of two typical behaviors, free riding behavior and consumer switching behavior, on inventory, ordering, and sales effort decisions in decentralized and centralized decision situations with stochastic demand. In order to achieve the optimal performance in the centralized system, this research designs a partial buyback contract to coordinate the supply chain. Furthermore, numerical analysis is provided to test the feasibility of the model. The results indicate that in the dual-channel supply chain with the above two behaviors, (1) the optimal sales effort level, optimal order quantity, the optimal offline, and online profits under the centralized decision-making are more than those under decentralized scenario, except for the optimal inventory level; (2) the increase of the offline consumer switching rate will lead to the reduction of the offline order quantity and the offline expected profit and raise the online inventory level and the online expected profit; (3) the increase of the online consumer switching rate will raise the offline order quantity and the offline expected profit but has no significant impact on the online inventory level and the online expected profit; (4) the increase of the free riding coefficient of the supplier, no matter whether in decentralized or centralized systems, will reduce the offline sales effort level, the offline expected profit, and the online expected profit and raise the inventory level. Finally, this work provides some managerial implication.http://dx.doi.org/10.1155/2021/5530124 |
| spellingShingle | Senyu Xu Huajun Tang Zhijun Lin Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing Complexity |
| title | Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing |
| title_full | Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing |
| title_fullStr | Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing |
| title_full_unstemmed | Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing |
| title_short | Inventory and Ordering Decisions in Dual-Channel Supply Chains Involving Free Riding and Consumer Switching Behavior with Supply Chain Financing |
| title_sort | inventory and ordering decisions in dual channel supply chains involving free riding and consumer switching behavior with supply chain financing |
| url | http://dx.doi.org/10.1155/2021/5530124 |
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